more bad news from the right wing extremist re January 12, 1987agan revolution

As Congress began reviewing President Reagan's proposed budget this week, officials from New York, New Jersey and Connecticut analyzed its effect on the region and concluded it would be devastating.

Commuters on subways, buses and railroads would face higher fares if the budget is adopted, the officials say. Students from the three states would lose about a half-billion dollars in education loans and grants. No new subsidized housing for low-income families would be built. A cap on Federal reimbursement for Medicaid would cost the states more than $500 million.

''Mass transit is wiped out, housing is decimated and student assistance is shot,'' said Senator Christopher J. Dodd, Democrat of Connecticut, who joined the Budget Committee this session. ''What else is there left in our part of the country?'' New York Seen Losing $2 Billion

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About 240,000 of the 1.5 million New York schoolchildren in the school lunch program would lose their subsidized lunches, state officials say. Elderly people entering the Medicare system, officials from the region said, would see their premiums rise by $84 a year. Poor families in the three states would lose more than $100 million in energy assistance, a 32 percent decline, according to state and Federal officials.

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